IT: Welcome to Derry season 1 episode 5 delivers the most direct encounter with Pennywise to date, driving most characters from the show into confrontation with the creature. The series weaves through the links of Derry's sinister past, the Scoteawapskot tribe, and generations of people who have tried to unravel the threads of IT’s cycle of terror. So far, viewers have learned about Hallorann's fraught relationship with his psychic ability and Shaw's malicious alliance with the military. They have also witnessed the dread that swirls deeper throughout the community with the unsolved cases of missing children.Disclaimer: The following article contains spoilers for the show. Reader's discretion is advised.In IT: Welcome to Derry season 1 episode 5, Lilly barely survives Pennywise’s attack in the middle of the sewers after falling behind. Just as Pennywise closes in, the dagger made from the fallen star drifts between them in the water, preventing IT from attacking her. The episode ends with Lilly safe, but unknowingly in possession of a sacred weapon.What was the black box in IT: Welcome to Derry season 1 episode 5? View this post on Instagram Instagram PostThe black box found in Dick Hallorann's mind is a consistent element that connects to Stephen King's larger universe. When Hallorann is submerged in the water in the sewer, he is not physically drowning. Rather, he is submerged in the depths of his own mind, and he awakens in a memory in his bathroom. There, Pennywise interferes with Hallorann's fears by taking the shape of his cruel grandfather, and pushes him to open a box.The "mental lockbox" is a concept that Hallorann's grandmother taught him, in which he learned to compartmentalize trauma and self-protect against overwhelming psychic agonies. It is also connected to Hallorann's "Shine," which is similar to the psychic gifts found in The Shining and Doctor Sleep.However, the events of IT: Welcome to Derry season 1 episode 5 help Pennywise gain access to Hallorann's mind, leaving his mental box open. This means that Hallorann is possibly trapped in his own trauma, and everything contained in the box is free.Also read: Where was IT: Welcome to Derry season 1 filmed? Complete guide to all filming locations and other production detailsIT: Welcome to Derry season 1 episode 5: Did Matty survive?A still from the trailer (Image via YouTube/HBO Max)In IT: Welcome to Derry season 1 episode 5, viewers are led to believe that Matty miraculously escaped Pennywise, navigating the sewers, and suggesting that Phil is alive. The kids accept Matty's story because it resonates with their fear. But once Matty lures them all the way into the sewers, they realize that Matty was never alive.Pennywise has adopted his body to bait the kids deeper into his lair. The illusion is shattered once they see the real remains of Teddy, Susie, and Phil bobbing in the water. It is also at that point that the kids realize Matty’s mannerisms were just a little bit off, particularly by the sudden knowledge of the clown's behavior.Pennywise employed Matty’s body as a psychic weapon against the group’s hope. Although an incredibly tragic moment for Matty, he serves an important narrative function as his appearance solidifies that Pennywise can transform into anyone, even the deceased, upping the stakes for each future encounter.How did Pauly Russo die in IT: Welcome to Derry season 1 episode 5?A still from the show (Image via Instagram/@hbomax)Pauly Russo’s death occurs during the military incursion into the sewers, when Leroy Hanlon and the airmen go to search for the pillars, which they think contain Pennywise. The team has very strict orders to shoot anyone they think should not be there, assuming it is Pennywise.At some point, the clown takes Charlotte's form to poison Leroy's mind, but he figures it out and fires his gun per the instructions. Eventually, his son Will and his friends arrive in the sewers, causing Leroy to aim his gun at Will, thinking that Pennywise has once again morphed.Pauly actually sees Will and knows that he is real. He does not have time to reason with Leroy, and he places himself in front of the bullet. Pauly does not die by accident, but he chooses to protect his friend.IT: Welcome to Derry season 1 episode 5 is available to stream on HBO Max.